Cambodia 20240922: Autumnal, Pedagogical, Gumball

Mekong Memo Cambodia Weekly: Business, politics, finance, trade & legal news.

Sep 23, 2024

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Headlines:

Withdrawal from CLV-DTA Development Pact

Funan Techo Canal Success Questioned

Hun Sen v Hun Manet: Generational Shift

Real Estate’s Fragmentation Challenges

EuroCham and AmCham Push for Tax Reforms

UN Experts Call for Journalism Charter Suspension

Diplomatic Ties: US, CN, TH, NZ, UA

RCEP Fuels 2024 Trade Growth

40% EV Cars and 70% EV Motorbikes by 2050

Tourism Growth Via China Engagement

Chinese Relations Remain Strong

Labor: Workforce Pushes for Real Gains

Banking Commits To Growth Despite Public Debt

Gumball Rally Cars Show off Cultural Landmarks

Withdrawal from CLV-DTA Development Pact

Cambodia has officially withdrawn from the Cambodia-Laos-Vietnam Development Triangle Area (CLV-DTA) following protests and claims that the agreement ceded Cambodian territory to Vietnam. Prime Minister Hun Manet and former Prime Minister Hun Sen said that the move was intended to address public concerns and disarm extremist groups using the agreement to incite protests. Despite leaving the CLV-DTA, Cambodia says it will continue regional cooperation through other frameworks like ASEAN and the Greater Mekong Subregion (GMS).

Read more: Khmer Times (Official Notification), ABC News (Protests and Political Context), Phnom Penh Post (Government Reasoning)

Funan Techo Canal Success Questioned

Cambodia’s $1.7 billion Funan Techo Canal, designed to link Phnom Penh to the Gulf of Thailand, is claimed to reduce reliance on Vietnamese ports, but still faces skepticism about its financial feasibility and environmental consequences. The project, backed by China, will displace thousands of residents and affect agricultural lands. Despite promises of economic growth and independence, there remain questions about compensation for displaced residents, environmental risks, and the project's long-term benefits. Critics highlight the lack of transparency and uncertain funding. A great read about the long-term viability of this controversial project.

Hun Sen v Hun Manet: Generational Shift

As Cambodia transitions leadership from Samdech Techo Hun Sen to Samdech Thipadei Hun Manet, differences are being shown in their governing styles. Hun Sen focused on control and protection, personally addressing public dissatisfaction and ensuring loyalty within his cabinet. Hun Manet, in contrast, so far has emphasized economic policy and delegation, empowering ministers to handle public accountability. His leadership will be measured by public health reforms and success at modernizing Cambodia’s industrial base, ability to pull in foreign investment and a reduction in national reliance on garment production.

Real Estate’s Fragmentation Challenges

CBRE's Cambodia Market Report 2024 is shows Phnom Penh’s real estate dynamics, uniquely shaped by low barriers to entry, limited regulation, and a sorting “villa culture.” These factors offer developers flexibility but contribute to fragmented growth and speculative development. The city’s small multinational presence limits demand for office space, while retail and residential markets see uneven growth. As Phnom Penh undergoes its first significant real estate cycle, it stands at a crossroads, with sustainability and structured development as important future challenges.

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